The budget director for Yardley Cleaning Services prepared the following list ofexpected selling and administrative expenses. All expenses requiring cash payments arepaid for in the month incurred except salary expense and insurance. Salary is paid in themonth following the month in which it is incurred. The insurance premium for six monthsis paid on October 1. October is the first month of operations; accordingly, there are nobeginning account balances. Requireda. Complete the schedule of cash payments for S&A expenses by filling in the missingamounts.October November DecemberBudgeted S&A ExpensesEquipment lease expenseSalary expense$ 6,800 $ 6,800 $ 6,8005,6006,1006,500Cleaning supplies2,8302,7603,060Insurance expense1,2001,2001,200Depreciation on computer2,0002,0002,000Rent2,5007702,5002,500Miscellaneous expenses770770Total operating expenses$ 21,700 $ 22,130 $ 22,830Schedule of Cash Payments for S&A ExpensesEquipment lease expensePrior month's salary expense, 100%Cleaning suppliesInsurance premiumDepreciation on computerRentMiscellaneous expensesTotal disbursements for operating expenses$ 20,100$ 18,430 S 19,230

Given information, The insurance premium is prepaid for 6 months on October 1, the amount of prepaid…

Answered: The budget director for Yardley…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter: As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances: Cash $ 40,000 Accounts receivable 200,000 Inventory 57,750 Buildings and equipment (net) 350,000 Accounts payable $ 85,125 Common stock 500,000 Retained earnings 62,625 $ 647,750 $ 647,750 Actual sales for December and budgeted sales for the next four months are as follows: December(actual) $ 250,000 January $ 385,000 February $ 582,000 March $ 296,000 April $ 193,000 Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales. The company’s gross margin is…
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Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter: As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances: Debits Credits Cash $ 44,000 Accounts receivable 203,200 Inventory 58,350 Buildings and equipment (net) 354,000 Accounts payable $ 86,325 Common stock 500,000 Retained earnings 73,225 $ 659,550 $ 659,550 Actual sales for December and budgeted sales for the next four months are as follows: December(actual) $ 254,000 January $ 389,000 February $ 586,000 March $ 300,000 April $ 197,000 Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales. The…
Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter: As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances: Cash $ 43,000 Accounts receivable 202,400 Inventory 58,200 Buildings and equipment (net) 353,000 Accounts payable $ 86,025 Common stock 500,000 Retained earnings 70,575 $ 656,600 $ 656,600 Actual sales for December and budgeted sales for the next four months are as follows: December(actual) $ 253,000 January $ 388,000 February $ 585,000 March $ 299,000 April $ 196,000 Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales. The company’s gross margin is…

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